Chennai-based supplier of electronic systems to defence and aerospace sector, Data Patterns (India) Ltd. has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India to raise finance through an initial public offering (IPO). As per market sources, it is expected to raise Rs 600-700 crore.
The public issue comprises a fresh issue of Rs 300 crore and an offer for sale of 60,70,675 equity shares by promoter and individual selling shareholders. The OFS includes sale of up to 1.97 million shares each by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan, up to 75000 by Sudhir Nathan, up to 414775 equity shares by G.K. Vasundhara and upto 1.65 million by other existing shareholders.
The company intends to utilise net proceeds from the fresh issue for repayment of debt, funding its working capital and upgradation and expansion of its existing facilities besides general corporate purposes.
The defence electronics company may consider a pre-IPO placement aggregating for up to Rs 60 crore. If such placement is undertaken, the amount raised will be reduced from the fresh issue, according to DRHP.
Founded by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan, having over 3 decades of sector experience. Data Patterns, a vertically integrated defence and aerospace electronics solutions provider caters to requirements across space, air, land and the sea. Its core competencies include design and development across electronic hardware, software, firmware, mechanical, product prototype besides its testing, validation and verification.
Data Patterns product portfolio ranges from building blocks to end systems. Its involvement has been found across Radars, Underwater Electronics, Communication and Other Systems, Electronic Warfare Suites, Avionics, Small Satellites, Automated Test Equipment, COTS and programmes catering to Tejas Light Combat Aircraft, Light Utility Helicopter, BrahMos and other Communication and Electronic Intelligence Systems.
It had developed the first nano satellite “NiUSAT” which thereafter deployed in 2017. Two more satellites are in progress.
DPIL works closely with the Defence PSUs such as Hindustan Aeronautics Ltd and Bharat Electronics Ltd as well as government organisations involved in defence and space research like DRDO. The company’s order book has grown at a CAGR of 40.72% over the last 4 years and as on July 31, 2021 stood at Rs 582.30 cr.
For FY21, the company’s revenue from operations was at Rs 226.55 crore against Rs 160.19 crore a year ago. Net profit for the period stood at Rs 55.57 crore versus Rs 21.05 crore last year.
According to F&S report, between fiscal 2019 and fiscal 2021, the company recorded the highest growth in revenues, EBIDTA margin, return on capital employed (ROCE) and return on equity (ROE) amongst key Indian defence and aerospace companies, with a revenue growth of 71% during this period.
Data Patterns is backed by former Blackstone head Matthew Cyriac via Florintree Capital Partners LLP which holds 12.8% in the company.
IIFL Securities Limited and JM Financial Limited are the book running lead managers to the issue.
